Construction Survey Data

Published: March 15, 1994

Manufacturers and builders are increasingly optimistic about the economy, a sign that growth is likely to extend through the first half of the year, the Dun & Bradstreet Corporation said yesterday.

Its monthly surveys of 1,000 manufacturers and 200 construction concerns showed a sharp increase in expectations of prosperity, marked by rising orders and increased employment.

Douglas Handler, a Dun & Bradstreet economist, called the manufacturing survey the most positive report since the business information provider created it in 1990. Mr. Handler said the construction survey results "show no reluctance in predicting good times ahead."

The construction results were considered particularly significant because they were gathered after interest rates began rising in early February. The construction industry is vulnerable to rising interest rates because it makes mortgages more expensive and discourages home-buying.

The manufacturers survey, which represents a cross-section of industries, showed that new and unfilled orders increased sharply in February, inventories of finished goods declined and expectations for higher employment increased.